STATE OF CALIFORNIA
PUBLIC UTILITIES COMMISSION

Lodi Gas Storage Project
Environmental Review

Project Description

The Applicant: Lodi Gas Storage (LGS) of Western Hub Properties

Lodi Gas Storage is a subsidiary of Western Hub Properties, which Haddington Ventures
formed in 1998 to develop natural gas facilities. Based in Houston, with an office in
Lodi, LGS plans to use the storage and pipeline to respond to market fluctuations in the
price and demand for natural gas.

Lodi Gas Storage Project

The Lodi Gas Project application requests that the CPUC issue a certificate of public
convenience and necessity for constructing and operating the proposed gas storage
facilities. The proposed project involves developing an old natural gas production field
in San Joaquin County and building a 33-mile pipeline to connect to PG&Es gas
pipeline system. The applicant would store natural gas underground in an area where
natural gas wells were previously active. According to the applicant, the gas field can
store up to 12 billion cubic feet of natural gas.

Purpose of Project

The applicant is designing the proposed gas storage project to respond to market fluctuations.If constructed, the facility will have the ability to inject and withdraw gas
several times within a day to respond to customer demands. In general, storage customers
will purchase natural gas for storage when prices are relatively low and withdraw the gas
when prices are relatively high or when supplies are limited.

Facilities

The applicant proposes to develop a natural gas storage area located under
approximately 1450 acres near Lodi. The proposed project includes the following
structures:

a compressor and dehydration station (to compress and further dry the gas)

a 33-mile pipeline

The applicant proposes to construct an approximately 33-mile buried pipeline that would
connect the storage field to PG&Es gas pipeline system on Sherman Island. The
potential environmental impacts of the route are under consideration. The applicant is
negotiating right-of-way agreements with local property owners along the pipeline route.

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